PTC Suspends Guidance After Schneider Electric Deal

The Tip Desk · November 5, 2026 · 3 min read

Fourth-quarter revenue was $673 million as annual run rate excluding divested businesses reached $2.51 billion.

PTC (PTC), a global industrial software company, reported fourth fiscal quarter revenue of $673 million for the period ended September 30, 2026, down 25% from a year earlier, as annual run rate excluding divested businesses reached $2.51 billion.

The company said revenue and, as a result, operating margin and earnings per share were impacted under ASC 606. On a constant-currency basis, using fiscal 2026 plan foreign-exchange rates, the fourth-quarter revenue decline was 24%.

As reported ARR excluding Kepware and ThingWorx, which PTC sold in the second fiscal quarter of 2026, was $2,508 million, up 8% from $2,320 million a year earlier. Constant-currency ARR excluding those businesses was $2,545 million, up 9.7%. On an as-reported basis including the sold units, ARR increased 1% year over year.

GAAP earnings were $1.44 a share, down from $2.88 a year earlier. Non-GAAP earnings were $2.03 a share. GAAP operating margin was 32%; non-GAAP operating margin was 46%.

License revenue was $267 million. Support and cloud services revenue was $382 million. Professional services revenue was $24 million. Recurring revenue was $645 million. Perpetual license revenue was $4 million.

Operating cash flow was $47 million. Free cash flow was $385 million. The company said fourth-quarter cash flow included about $24 million of divestiture-related costs and about $75 million of divestiture-related cash taxes, none of which it expected to recur. Free cash flow also included about $5 million of capital expenditures related to moving a major research-and-development center, which the company said were not expected to recur.

Cash and cash equivalents were $233 million at September 30, 2026. Debt, net of deferred issuance costs, was $1.61 billion. Deferred revenue was $821 million.

For the full fiscal year ended September 30, 2026, revenue was $2.73 billion, essentially unchanged from $2.74 billion a year earlier. On a constant-currency basis, full-year revenue declined 2%. GAAP earnings were $8.93 a share, up from $6.08 a year earlier, a result that included gains of $463.9 million on the sale of Kepware and ThingWorx and $2.0 million related to finalization of contingent consideration on an earlier PLM-services sale, offset by an $0.8 million financing charge tied to a debt commitment for the divestiture. Non-GAAP earnings were $8.24 a share. GAAP operating margin was 33%; non-GAAP operating margin was 47%.

Full-year operating cash flow was $899 million and free cash flow was $873 million. The company said fiscal 2026 cash flow included about $48 million of divestiture-related costs and about $83 million of divestiture-related cash taxes, partially offset by about $70 million of divestiture-related net free cash flow contribution, none of which it expected to recur. Free cash flow also included about $14 million of capital expenditures related to the R&D-center move.

In the third fiscal quarter, PTC had reported revenue of $600 million, down 7% from a year earlier, and as-reported ARR excluding divested businesses of $2,412 million, up 7%. Constant-currency ARR excluding those businesses was $2,448 million, up 9.1%. GAAP earnings then were $1.03 a share and non-GAAP earnings $1.58 a share. Operating cash flow was $261 million and free cash flow $249 million.

As previously announced on October 5, 2026, PTC entered into a definitive agreement to be acquired by Schneider Electric. In light of the pending transaction, the company said it is suspending quarterly earnings conference calls and is no longer providing quarterly or annual guidance.

PTC employs more than 7,000 people and supports more than 30,000 customers globally.